This case involves a publicly traded telecommunications company. The company went public when it acquired a publicly traded long distance telecom services company. Throughout the 2000s, the company continued to grow by acquiring various companies and expanding its operations across the United States, using multiple software programs like Quickbooks to expand and manage their portfolio. The company used an aggressive acquisition strategy. Analysts remarked that the company, which had a negative cash flow of over $7 million after 11 years in business, would be able to generate only $64 million in free cash flow in two years and $100 million in three years. Considering the situation, many company observers predicted that the company would soon declare itself bankrupt. The company’s accounting department used accounting practices that showed constantly increasing profits. The accounting department wrote down millions of assets the company acquired and included in this charge against the earnings the cost of company expenses expected in the future. This created a profit picture that was constantly improving. The accounting department classified $800 thousand in line costs as capital expenditures rather than current expenses to increase net income and assets.